Marketing for Toyota Prius Phv

TOYOTA PRIUS PHV

170140555 Yurie Mukaigawa

We are designing a compact car which operates with solar energy. Since its debut in January 2011, we have sold 75000 Prius all over the world includes the US and Europe. Furthermore, in February 2017, the next model of Prius PHV launched with new attractive function for the consumers. The most distinctive addition is that new Prius adopted ‘solar charge system’ which makes possible driving with both solar power and petrol energy, which is the first challenge in the world motor industry.

In order to increase our market share and success in this competitive motor industry, we have to focus on Japanese market as a first manufacturing place for Prius PHV.  I would like to analyse and planning for the possibility of our market expansion all over the world near future.

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[^[1]Figure1. New Prius PHV]

1. SWOT analysis

In this section, I will analyse Prius PHV with SWOT analysis. This analyse enables us to evaluate own business and seek the possibility for marketing environment.

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Strengths

1. Functional and design improvement

Compared to previous model, new Prius PHV model expanded EV driving distance and field. ^[2]Battery doubled with 8.8kWh which is great larger than 1.3kWh of common Prius. Thanks to this improvement, EV driving possibility distance also doubled, and there are more other excellent points with new Prius PHV model. Furthermore, the power of motor drive is really strong, silent and stable as drivers do not need to drive with engine. Not only those functional improvement, but new model has attractive and luxury design. Unpopular and troublesome narrow rear window was enlarged for new model.

1. First debut car with solar panel on roof

Prius PHV is famous for its uniqueness with solar panel equipped on rooftop with 180w battery, which enables drivers to charge for ^[3]6.1km a day. This type of solar panel is the first production vehicles in the world.

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1. Possibility for emergency power sources.

Historically, Japan has faced many kinds of disasters, such as great earthquakes, Tsunami, or landscape. It is very common to prepare for the time of emergency in Japan, even for individual house holders. Prius PHV can be a power sources at the time of blackout. Also, fuel supply delays or stop because of road collapse, it is not uncommon to see the long waiting line in front of petrol station after disaster settle down. ^[4]According to survey of the Japanese Ministry of Economics, Trade and Industry, the electric supply reworked fastest after great earthquake and Tsunami in 2011, rather than gas, water, and petrol.

Weakesses

1. Limitation of charging spot.

Solar charging spot has many limitations. For example, although it is easy to charge when parking outside, there are many types of parking in Japan. Recently, many house garages equipped inside with no solar or windows. Also, when we live in apartments, the parking is usually equipped with outside of the building, separated from outlet. Moreover, electric charging system has to be built for individual customer houses, but this must be an obstacle for people living in apartments. In Japanese urban areas, ^[5]41.7% of population live in the apartment type accommodation, with not outlet in parking.

1. Expensive price.

The price of Prius PHV is pretty expensive, from ^[6]3261600 yen to 4222800 yen as same as about 22964 to 29732 GBP in a current exchange rate. This high price comes from technological difficulty of solar energy, but this expensive price is one of the most considerable weakness for Prius PHV. This price is higher than common Prius model about 800000 to 100000 yen, about 5600 to 7000 GBP. In addition, construction fee is about 200000 yen for individual houses to build up charging spot.

1. Absence of customer’s review.

New Prius made its debut in February this year, it is quite difficult to get a number of customer’s review. Reviews are important for today’s consumers especially on the internet.

1. Solar panel is only an optional function with inferior type S.

New Prius PHV has three different types, which names Premium A, A, and S. Rooftop solar panel costs about ^[7]280000 yen (1946 GBP), that is only allowed to equip with type S, the most functionally inferior type among three types. For customers who need functional cars, this type S will not be listed on the choices. Moreover, even if customer choose this optional function, tax reduction is as same as the model without solar panel.

1. Cost performance for short distance drivers.

For short distance drivers, this Prius PHV cannot save their cost of fuel. ^[8]Prius PHV is about 1000000 yen (about 7000 GBP) more expensive than previous model running with petrol, but this gap can only break even when drive more than 30000 km in a year for 10 years. This is quite long distance, because I usually drive an hour everyday but the total amount of driving distance of my car is only 20000 km since I bought three years ago.

Opportunities

1. Reduction of taxes.

Prius PHV is a subject of reduction of taxes from Japanese government. The maximum tax reduction is ^[9]365000 yen (about 2568 GBP) for each consumer. For expensive price of Prius, this tax reduction can be a great merit.

1. Rising interest in environmental issue.

According to ^[10]global survey on environmental issue in 2016, the interest in natural protection is getting bigger and bigger these days. Compared to the survey in 2011, if I put the lowest awareness as 1 at the age of 30s and 20s in 2011, the shift of global awareness grows gradually as follows.  The most distinctive point of in this shift is that the generation gap has been getting decreased, young 30s and 20s people are more interested in natural environment.